User policy is not always being applied to user session. This only affects user policies set in gpmc not studio policies.
Peforming GPUPDATE /FORCE did not help, user policies would still not apply. MS policies were not affected just Citrix user policies. User who experienced the issue could resolve mostly by logging in an out a few times.
Clearing the following Location does not resolve the issue completely: C:\ProgramData\Citrix\GroupPolicy C:\ProgramData\CitrixCseCache HKLM\Software\Policies\Citrix\*SessionID*
In the Director you can see that only the Citrix Computer Policies are applied to the User session. The Policies are configured in the MS GPMC.
Upgrade to CSE 2.9 (VDA 7.11) to resolve this issue.